via SafeGaven.com - The GOFO

I don't mind lengthy discussions of the GOFO, since we lost this indicator a while ago. But the implication is that should gold prices rise, this indicates a gold forwards rate in the negative. But there's a new fly in the ointment, where there are over 500 promises made for each available ounce on the COMEX.

Whomever is shorting gold has done so on a grand scale and has resorted to spectacular leverage, through derivatives contracts.

I believe the case to be the same with GBN.H shares, where the short position through equity swaps would exceed the actual public float. This is the single practical reason that I can come up with as to why the law was necessarily contorted to such a degree.

Whomever is shorting GBN.H shares has done so at a spectacular level, my shares in my account have declined in price an additional 99.97%, even though the last traded value was 0.005 cents. So the value accorded my shares in the trading account are 0.003 X 0.005 cents, virtually no value whatsoever.

It's more of a question of the timetable for the lifting of the trading halt and stay of proceedings. Will this continue to drag on for months, or will it only be weeks when sanctions are lifted?

http://www.safehaven.com/article/41494/gofo-and-gold-prices

-F6